Existing Home Sales Rebound in September

According to a report out today from the National Association of Realtors (NAR), existing home sales (single family homes, townhomes, condos and coops) jumped more than 9 percent higher than September 2008 and was the highest activity level in more than two years.

As you might except, we have first time home buyers to thank. With the tax credit, low interest rates and undervalued homes, first-time home buyers accounted for more than 45 percent of home sales nationally during the past year. And, distressed homes accounted for nearly 30 percent of transactions in September.

Realtors, home buyers and sellers alike are hoping that the government extends the first-time buyer tax credit, which has been the key in the slow housing market recovery we are beginning to see.

Another positive stat reported today from the NAR is that the total housing inventory fell 7.5 percent at the end of September to 3.63 million existing homes for sale, which represents a 7.8-month supply at the current sales pace, down from a 9.3-month supply in August. And, unsold inventory totals are down 15 percent from a year ago. Lower inventory means home prices will begin to return to normal, modest appreciation patterns next year.

Here's the region-by-region picture from the NAR:

• Northeast: Existing-home sales increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price was $234,700, down 7.0 percent from a year ago.
• Midwest: Existing-home sales jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price was $147,600, which is 1.0 percent below September 2008.
• South: Existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price was $153,500, down 7.6 percent from a year ago.
• West: Existing-home sales surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.